Debt Ceiling Upped to $10.615tn, Just in Case

Congress has approved the housing bill [yep, they work on Saturday..]

Congress approved a massive housing market rescue bill on Saturday, offering emergency financing to Fannie Mae (FNM) and Freddie Mac (FRE), creating a new regulator for the mortgage titans and setting up a $300-billion fund to help troubled homeowners.

The bill was approved by the Senate in a 72-13 vote. It was passed by the House of Representatives on Wednesday. President George W. Bush was expected to sign it promptly.

With foreclosures rising, home sales sluggish and property values down, America is in its deepest housing slump since the Great Depression. The crisis will be eased, but not ended by this election-year bill, said housing activists and scholars.

Here is the interesting bit, the CBO puts the expected cost of bailing out the enterprises at $25bn but just in case…

SEC. 3083. INCREASE IN STATUTORY LIMIT ON THE PUBLIC DEBT.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $10,615,000,000,000.

Comments

[xsuddensam:]

If you add in the $14tn private debt, our nation's total debt approaches $25tn! That's roughly $50,000 for every man, woman and child!

2008 Jul 27 08:21 AM

[User 134200:]

Oh happy days, nothing that we tax payers can't absorb.

2008 Jul 27 08:24 AM

[OldLimey:]

Gee - I guess this must be why everybody's turning so Bullish on the dollar.

2008 Jul 27 09:20 AM

[poncawolf:]

How Do You Win A Lie?
You can hide from it? – You can bury from memory? You can pretend it never happened?
You can run from it? – Making it something else – But even a LIE holds a truth – The truth of character – Of who insists on winning there lies – as a foundation of truth.
You can change the perception of the LIE – Ohh it was this – or it was that – a reason for every season.
But when the darkness of the LIE finally comes to a end – IT is simply for the American people of shame – WE are spending too much money – time to stop it – and put that - money back into the U.S. economy.
When People have followed a LIE for so-long – and heard all the justifications for that LIE – and they begin to suffer for that LIE – They will simply walk away from those who love there LIES.
So if McCain and his puppet master are so insistent on winning there LIE – Let them – The American People’s heart can only handle so much – before they turn – on the LIARS.
We The People – A Nation built of - Honor and Truth above all.

2008 Jul 27 10:16 AM

[Joyful Alte...:]

And the administration is saying, well, it'll take us about a year to figure out how to put this housing rescue package into effect. By then, it's apt to take another trillion to make it work. I hope Congress flicks the whip at the Arabian Horse Association executives now running the bureaucracy.

2008 Jul 27 11:08 AM

[Gary A:]

That ceiling is not high enough based upon the National Australia Bank's writedowns of AAA rated CDO's to the value of TEN CENTS ON THE DOLLAR.

And there is not enough capital in the world to bail out fannie and freddie and the weak sisters like Wachovia and the investment banks based on even 30 cents on the dollar. And even that bastion of liquidity, JP Morgan has trillions of this stuff, and they are hiding the true value.

2008 Jul 27 11:15 AM

[Dragon Master:]

Always keep it mind that US is already broken. Gov does not have money. Every time we heard Gov is going to bailout/provide stimulate/buyout, that is printing more paper money, i.e. steal wealth from its citizens.

2008 Jul 27 01:29 PM

[Kunst:]

And let's not forget Social Security and Medicare, as well as unfunded public employee pension obligations. Now we're up in the $50-100 trillion range.

Anybody really believe these will all be paid off in honest dollars?

2008 Jul 27 01:34 PM

[lblaine:]

To avoid a 1930s style depression, the government will do everything it can to stimulate the economy. Their approach is to print/spend as much money possible, so that the existing debts will be paid off with "cheaper" dollars. By September, the Japanese and Chinese will not be bidding for treasury bonds, and bond yields will skyrocket. When the US$1.8 buys one Euro, Foreigners will buy up US assets hand over fist.

2008 Jul 27 04:11 PM

[kurt walter:]

Socialism, Marxism, call it what you want. Using taxpayer money to "fix" the foreclosure mess it against the constitution. The stimulus package was Marxist, too. When people got more money back in the stimulus check then they even paid in taxes, that smells of Robin Hood, take from the rich and give to the poor. Citizens talk freedom, but they seem to really want socialism.

2008 Jul 27 04:42 PM

[kurt walter:]

I wish everyone would NOT vote for any congressional incumbent in November. We could clear out the house of representatives with new blood and get rid of 1/3 of the Senate.

2008 Jul 27 04:43 PM

[mikengineer:]

Compare it with Obama tax increase and it will just a breese

2008 Jul 27 08:11 PM

[secmaven:]

The question is...is the printing press money of the United States a better bet than the printing press money of any other country or collection of countries. Based on the fact that we will have to print the most money of all countries to continue to support the life style of 200 million Americans who have not produced enough for years (except military hardware and foreign intervention) to deserve that life style we have to come down in favor of their printing press money instead of ours.

2008 Jul 27 08:32 PM

[montross515:]

Since every number issued by the Bush Administration is an understatement or lie, I doubt if the debt numbers are valid either. We probably already have over 12 trillion of USA debt out there, truth be told. Will Obama tell us the truth? Do we deserve the truth if we don't demand it? I think Vince Foster wanted to tell us the truth, but unfortunately he shot himself in the head and then threw the gun 20 feet uphill...

2008 Jul 27 11:47 PM

[Geldpress:]

The debt "ceiling" is an anachronism. We overspend until we get close to the limit, then we raise the ceiling and start over! The debt ceiling was first created in 1917 with the second liberty bond act.
www.geldpress.com/2008.../

2008 Jul 30 11:23 PM

[billdwan:]

Get ready to have commodities denominated in Chinese Yuan :-)

2008 Aug 25 06:00 PM